Conclusive dispute-resolution immunity bars revision to reopen penalty proceedings under a different tax penalty provision.

A statutory dispute-resolution certificate granting conclusive immunity from penalty proceedings bars reopening the same penalty matter through revision under section 263 of the Income-tax Act, 1961. The Rajasthan HC noted that the Direct Tax Dispute Resolution Scheme, 2016 treated matters covered by the certificate as final and not reopenable under the Act. Because the immunity was against institution of any penalty proceeding in relation to the disputed tax, it was not limited to a particular penalty provision. An audit-based objection that a different penalty section should have been applied could not revive a jurisdiction already barred by the scheme, so the revisional order was unsustainable.

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Issues: Whether revisional action under section 263 of the Income-tax Act, 1961 could be sustained when the assessee had been granted immunity under the Direct Tax Dispute Resolution Scheme, 2016 from penalty proceedings in respect of the disputed tax.

Analysis: The assessee had obtained a certificate under the Direct Tax Dispute Resolution Scheme, 2016. The scheme treated the order passed under the scheme as conclusive, and matters covered by it were not to be reopened in proceedings under the Act. The immunity granted by the certificate was against institution of any proceeding for penalty in relation to the disputed tax, and that immunity was not confined to any particular penalty provision. Once such immunity existed, the alleged mistake as to whether penalty ought to have been imposed under one penalty provision or another did not furnish a basis for revision. The objection based on audit, therefore, could not revive penalty jurisdiction barred by the scheme.

Conclusion: The revisional order under section 263 could not be sustained and the question was answered in favour of the assessee.

Final Conclusion: The appeal failed because the scheme-based immunity and conclusiveness of the certificate barred reopening of the penalty matter through revision.

Ratio Decidendi: Where a statutory settlement or dispute-resolution scheme grants conclusive immunity from penalty proceedings, revision cannot be invoked to reopen the same matter on the ground that a different penalty provision should have been applied.

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